In April 2000, the United States had a labor force of 141,230,000, employment of 135,706,000, and there were 67,986,000 people not in the labor force (all numbers rounded to the nearest 1000)
(a) Calculate the unemployment rate.
(b) Calculate the participation rate.
(c) Calculate the employment ratio.
(a) Unemployment = labor force - employment = 141,230,000 - 135,706,000 = 5,524,000, so the unemployment rate is 5,524,000/141,230,000 = 3.9%.
(b) The participation rate is the fraction of the adult population in the labor force. The adult population is the labor force + the number not in the labor force = 141,230,000 + 67,986,000 = 209,216,000. The participation rate is then 141,230,000/209,216,000 = 67.5%.
(c) The employment ratio is the employed fraction of the adult population, which is 135,706,000/209,216,000 = 64.9%.
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